According to American Express, 18-29 year olds were hot to purchase high-end goods last year. From “It” bags to vertiginous heels and fine jewelry, Gen Y consumers ramped up their spending on premium brands by 33 percent in 2011. To satisfy this ravenous new group of big spenders, retailers must stay on top of e-commerce and mobile apps, in addition to keeping the traditional brick and mortar experience as customer-service oriented as always.

Nordstrom and Saks top the heap of department stores catering to younger consumers lusting after luxe designer apparel and accessories.

But don't discount shopping direct from the brands because Burberry's fine mix of e-commerce coupled with such social media efforts as live-streaming its London Fashion Week runway shows delivers a timely one-two punch to competitors. One by challenging fashion's old guard (think magazine editors and established retail buyers) and delivering a glimpse of the goods to the general public immediately and two by offering pieces of the new season's collection right after they've trotted down the runway, Burberry is dismantling the heirarchy and serving up style right into the willing consumers' hands.

Indie designer Rebecca Minkoff has also played the purse strings of consumers by continuing to deliver edgy designs in ways that resonate with Gen Y. Her Fall/Winter runway show was opened by It-rapper-music-producer Theophilus London and closed with a hush-hush party for her Twitter followers that was immediately leveraged as a shopping experience. Bloggers (the new fashion influencers) were dressed in Minkoff creations and given cameras to capture the frolic. Later, the Minkoff blog posted the photos along with links to purchase the posh frocks straight from the source.